STRATEGY ONE > Volume II > Number I

People making news...

Richard K. Ellis has rejoined Buxbaum Group as Executive V.P. for New Business Development. Most recently, he was a founder and President of CheckPoint, a multinational industrial pumping company servicing the petroleum and chemical industries; Ellis recently successfully sold his interest in the company. From 1990 to 1993, he was a liquidation manager at Buxbaum Group, directing sales at such retailers as Frederick & Nelson Department Stores, Weinstocks Department Stores and Thrifty Drug Stores... Joseph Kofsky, a 35-year veteran of the apparel industry, has joined Buxbaum as a Regional Business Development Director, responsible for the West Coast. Most recently, he was an operations management

Weighing Impact (continued)

consultant at Moss Adams LLP

Apparel Management Services

Group, which he joined in 1994. Prior to Moss Adams, he worked in management consulting for Ratoff and

Associates and

Joseph Kofsky

Stonefield Josephson Consulting. From 1972 to 1987, Kofsky was a Chief Operating Officer for companies such as Encino Shirt and two divisions of Richton Sportswear. He graduated from the Fashion Institute of New York as a textile engineer and received a

BA in economics from City College of New York.

Janet Labuda, Director of Textile Enforcement for the U.S. Customs & Border Protection, recently reported that the ongoing problem of counterfeit documentation has reached almost "epidemic proportions." Labuda calls 2004 the year of "quota shenanigans," and expresses concern that if U.S. businesses import from certain countries around the world, their goods will likely be held back for weeks at a time. According to the agency, no matter how much effort a company exerts to assure that its documentation is accurate, it should be prepared for a 30-day delay (if its shipment is detained), while Customs reviews its records.

Adding to the frustration is the fact that it is up to the importer to legally prove the items should be released. Yet, even if the importer has a strong case, there are still no guarantees the country will free the merchandise - and Customs is under no obligation to explain why.

This fight against trans-shipment should be of significant concern for any manufacturer, retailer and secured lender involved with seasonal goods. If such items as bathing suits or sweaters are held up in customs for weeks at a time, this can significantly decrease their value. Further, delayed or cancelled shipments upset the supply chain and strain ongoing customer relationships.

Against this background, secured lenders must be cautious when offering credit to importers and retailers of imported seasonal items. Lenders should become familiar with the practices of their importer clients. Specifically: (1) Is the client importing from targeted countries and, if so, how do these imports play into the inventory shipments as a whole?

(2) Does the client visit the foreign factories and is the client familiar with the production practices within those factories? (3) If the client uses an agent, how long has the relationship been in place and is the agent paid upon shipment or upon clearance of customs? (4) Are the terms of payment generally upon shipment or upon clearance of Customs?

These increased Custom inspections due to the rise in both trans-shipments and terrorism are now part of our business reality. All businesses will inevitably face an increased risk as a result. Managing, controlling and evaluating these risks are the current focal challenge.

Inventory (continued)

rolled out its Roadmap™ for Retail appraisal model. The firm is now in the process of developing applicable Roadmap™ models for manufacturing, wholesale distribution, and machinery and equipment appraisals.

During 2003, Buxbaum Group also initiated a successful series of seminars for lenders that address the unique issues associated with appraising and liquidating wholesale inventories. "We've received very positive responses thus far from several of our lender clients who attended the seminars," Siebersma notes.

Numerous presentations have been scheduled for this year. To learn more about the seminar program, contact Buxbaum Group at (800) 990-6820.



People making news...
Richard K. Ellis has rejoined Buxbaum Group as Executive V.P. for New Business Development. Most recently, he was a founder and President of CheckPoint, a multinational industrial pumping company servicing the petroleum and chemical industries; Ellis recently successfully sold his interest in the company. From 1990 to 1993, he was a liquidation manager at Buxbaum Group, directing sales at such retailers as Frederick & Nelson Department Stores, Weinstocks Department Stores and Thrifty Drug Stores... Joseph Kofsky, a 35-year veteran of the apparel industry, has joined Buxbaum as a Regional Business Development Director, responsible for the West Coast. Most recently, he was an operations management Weighing Impact (continued)	consultant at Moss Adams LLP Apparel Management Services Group, which he joined in 1994. Prior to Moss Adams, he worked in management consulting for Ratoff and
	Associates and
		Joseph Kofsky
	Stonefield Josephson Consulting. From 1972 to 1987, Kofsky was a Chief Operating Officer for companies such as Encino Shirt and two divisions of Richton Sportswear. He graduated from the Fashion Institute of New York as a textile engineer and received a BA in economics from City College of New York.

Janet Labuda, Director of Textile Enforcement for the U.S. Customs & Border Protection, recently reported that the ongoing problem of counterfeit documentation has reached almost "epidemic proportions." Labuda calls 2004 the year of "quota shenanigans," and expresses concern that if U.S. businesses import from certain countries around the world, their goods will likely be held back for weeks at a time. According to the agency, no matter how much effort a company exerts to assure that its documentation is accurate, it should be prepared for a 30-day delay (if its shipment is detained), while Customs reviews its records. Adding to the frustration is the fact that it is up to the importer to legally prove the items should be released. Yet, even if the importer has a strong case, there are still no guarantees the country will free the merchandise - and Customs is under no obligation to explain why. This fight against trans-shipment should be of significant concern for any manufacturer, retailer and secured lender involved with seasonal goods. If such items as bathing suits or sweaters are held up in customs for weeks at a time, this can significantly decrease their value. Further, delayed or cancelled shipments upset the supply chain and strain ongoing customer relationships. Against this background, secured lenders must be cautious when offering credit to importers and retailers of imported seasonal items. Lenders should become familiar with the practices of their importer clients. Specifically: (1) Is the client importing from targeted countries and, if so, how do these imports play into the inventory shipments as a whole?	(2) Does the client visit the foreign factories and is the client familiar with the production practices within those factories? (3) If the client uses an agent, how long has the relationship been in place and is the agent paid upon shipment or upon clearance of customs? (4) Are the terms of payment generally upon shipment or upon clearance of Customs? These increased Custom inspections due to the rise in both trans-shipments and terrorism are now part of our business reality. All businesses will inevitably face an increased risk as a result. Managing, controlling and evaluating these risks are the current focal challenge.
	Inventory (continued)
	rolled out its Roadmap™ for Retail appraisal model. The firm is now in the process of developing applicable Roadmap™ models for manufacturing, wholesale distribution, and machinery and equipment appraisals. During 2003, Buxbaum Group also initiated a successful series of seminars for lenders that address the unique issues associated with appraising and liquidating wholesale inventories. "We've received very positive responses thus far from several of our lender clients who attended the seminars," Siebersma notes. Numerous presentations have been scheduled for this year. To learn more about the seminar program, contact Buxbaum Group at (800) 990-6820.